Weekly Report 28 -31 / 12 / 2009
The cable stabilized below thebroken main support levelfor the descending channel, shown on the image above, while constantly fluctuating around breached support that had turned into resistance with the support of positive reversal signs, appearing through momentum indicators, in addition to a near formation of a bullish technical pattern - all these factors make us expect that the expected direction for this week is bullish; where the main mover is the breach of the neckline for the bullish pattern at 1.6020 to pave the way to target 1.6255 initially, and then 1.6400. The expected bullish direction will prevail if we do not witness a daily closing below 1.5900.
The trading range for today is among the key support at 1.5700 and the key resistance at 1.6400.
The general trend is to the upside as far as 1.4840 remains intact with targets at 1.7200.
|Recommendation||Based on the charts and explanations above our opinion is buying the pair with the breach of 1.6020 targeting 1.6255 and stop loss below 1.5900, might be appropriate.|